Dabur India Limited · NSE:DABUR
Dabur India — Investor Presentation (August 2013)
32 slides from Dabur India's investor presentation, August 2013
Slide 1: Dabur India Limited Corporate Profile August 2013
Dabur India Limited C Corporate P Profile fil August ugust 2013 0 3
Slide 2: Agenda
Agenda Dabur India-Introduction FMCG Industry Scenario Business Overview Strategy Overview Recent Performance 2
Slide 3: Introduction
Introduction Established in 1884 ‐ more than 128 Years of Trust & Excellence World’s largest in Ayurveda and natural healthcare Dabur ranked amongst the Dabur India Ltd Bags Golden Top 5 Indian companies with Peacock Award For Excellence the best Board of Directors p In Corporate Governance 2012
Slide 4: Vision and Core Values
Vision and Core Values Vision • Dedicated to the health and well being of every household Ownership Passion Integrity for Winning Core Values People Innovation Developm ent Team Consumer Workk Focus 4
Slide 5: Key Milestones
Key Milestones 1884 1972 1986 •Dr. SK Burman started •The company shifted •Registered as Public an Ayurvedic Pharmacy base to Delhi from Limited Company in Kolkatta Kolkata 1994 1998 2003 •Listed Li t d on the th Bombay B b •Professionalized P f i li d with ith •Pharmaceutical Ph ti l B Business i S
Slide 6: Performance Overview
Performance Overview Sales “Robust profitable growth translating in INR bn 61.5 52.8 into superior shareholder returns” 40.8 28.1 33.9 FY09 FY10 FY11 FY12 FY13 Market Capitalization in INR bn EBITDA 238.9 in INR bn 16.0 185.4 167.2 14.0 11 2 11.2 137 8 137.8 12.0 10.0 8.3 9.5 8.0 6.7 85.4 6.0 5.2 4.
Slide 7: Business Footprint
Business Footprint UK Turkey Nepal UAE U.S. Egypt B’Desh Nigeria Sri Lanka Domestic Mfg. Locations Key markets Manufacturing Facilities Our strategy is to localize manufacturing, supply chain and product offerings to suit consumer requirements in each geography 7
Slide 8: Our Billion Rupee Brands
Our Billion Rupee Brands Home & Personal Care Health Care Foods 8
Slide 9: Research & Development Focus
Research & Development Focus Team of scientists including Strong New Product Development Ayurvedic doctors, Pharmacists, Agronomists, Botanists, Tissue Ayurvedic Medicines Culture specialists, etc. Personal Care Foods Home Care A Agro Bi Biotech t h Initiatives I iti ti OTC Healthcare Pr
Slide 10: Dabur - Domestic Distribution Structure
Dabur - Domestic Distribution Structure Factory ((Carryy & Forward Agents) g ) Depot Stockists Super stockists Insti Stockists Modern Trade Stockist Wholesalers Sub stockists Retail trade Rural trade Insti customers Shoppers & Consumers Direct reach 0.8 mn outlets “Total reach at 5.8 mn retail outle
Slide 11: Agenda
Agenda Dabur India-Introduction FMCG Industry Scenario Business Overview Strategy Overview Recent Performance 11
Slide 12: FMCG Sector in India
FMCG Sector in India Th The IIndian di FMCG sector’s’ size i iis peggedd at R Rs. 2 trillion illi with i h rurall IIndia di contributing ib i to a third of revenues As per a study conducted by Booz & Company, FMCG sector is expected to grow in the range off 12% to 17% upto 2020 andd could ld tou
Slide 13: Category Penetration Levels - India
Category Penetration Levels - India Urban Rural 91% 84% 72% 69% 63% 56% 45% 21% 22% 13% 12% 10% 4% 2% Glucose Branded Baby Hair Oil Shampoo Toothpowder Toothpaste Toilet Cleaners Oil Source: IRS Low penetration levels offer room for growth across consumption categories Rural penetration still lo
Slide 14: Per Capita Consumption
Per Capita Consumption Skin Care – Per Capita Consumption (in US$) Shampoo – Per Capita Consumption (in US$) 9 3 2.7 7.4 7.7 8 2.5 2.4 7 6 2 5 1.1 1.5 4 3.2 1.0 3 1 2 0.8 0.5 0.3 1 0.3 0 0 China Indonesia India Malaysia Thailand China Indonesia India Malaysia Thailand Toothpaste – Per Capita Consump
Slide 15: Agenda
Agenda Dabur India-Introduction FMCG Industry Scenario Business Overview Strategy Overview Recent Performance 15
Slide 16: Business Structure
Business Structure Dabur India Ltd. International Domestic (69%) (31%) Organic Hobi Consumer Foods Retail Others Namaste International Group Care (55%) (11%) (1%) (3%) Labs (8%) (19%) (3%) Note: % figure in brackets indicate % share in Consolidated Sales for FY13 * Others includes Commodity Exports
Slide 17: Dabur – Sales by Business Vertical
Dabur – Sales by Business Vertical Dabur derives 69% of its sales from Domestic business (Consumer Care + Foods + Others) and 31% from International business Others Foods 4% 11% Consumer Internation Care al Business 55% 31% Skin Care Others Health Africa 6% 4% Supplements 21% Oral Care 21% 17% U.S
Slide 18: Consumer Care Categories
Consumer Care Categories Category g y Keyy Products and Brands Market Position Chyawanprash: Honey: Glucose: #1 in Ayurvedic Tonics (Chyawanprash) Health Supplements #1 in branded Honey #2 in Glucose Herbal Digestives: #1 in Herbal Digestives Digestives Babyy Care: Cough g & Cold: Women’s Health #1
Slide 19: Consumer Care Categories (Contd.)
Consumer Care Categories (Contd.) Category g y Keyy Products and Brands Market Position Hair Oils: Shampoo: #2 in Hair Oils #4 in Shampoos Hair Care T th t : Toothpastes T th Toothpowder: d #3 in Toothpastes Oral Care #2 in Toothpowders Air Freshener: Mosquito Rep. Cream: Toilet Cleaner: #1 in Air F
Slide 20: Foods
Foods Foods portfolio comprises Fruit Juices and Culinary range Fruit Juices are under the brands – Real, Activ and Burrst Culinary range is under Hommade brand Key Products and Brands Market Position Juices & Nectars: #1 in Fruit Juices Culinary: 20
Slide 21: International Business
International Business Overview i l Sales International S l Breakdown kd ( 3) (FY13) Dabur’s international business contributes 31% to consolidated sales Our O focus f markets k t are Africa, Af i Middl East Middle E t and d Asia A i as U.S. these offer substantial long term growth opportunities
Slide 22: International Business (Contd.)
International Business (Contd.) Africa Opportunity pp y Africa’s Bulging g g Base With a population of c. a billion, Africa offers huge potential for the consumer sector in the long run driven by factors such as rapidly emerging middle class, with increasing disposable incomes Between 2005 and 2
Slide 23: Recent Launches - India
Recent Launches - India Babool: Salt Variant Activ: Drinking Yoghurt Real: Supa Fruits range Hajmola: Anardana Gulabari: variant Moisturizing Lotion Fem: Turmeric Variant Real Burrst: Ethnic OxyLife: Gel Bleach Odonil Gels Flavour – Kokam 23
Slide 24: Recent Launches - International
Recent Launches - International Vatika Enriched Hair Vatika: Hair Mayonnaise Dabur – Medicated Vatika Professional Oil – Black Seed Toothpaste Range Vatika Henna Vatika – ENRICHED Hair Color Coconut Hair Oil with Curry Leaves 24
Slide 25: Agenda
Agenda Dabur India-Introduction FMCG Industry Scenario Business Overview Strategy Overview Recent Performance 25
Slide 26: Three Pillars of Growth
Growth Strategy Three Pillars of Growth Expand Innovate Acquire Strengthening presence in Strong focus on innovation. Acquisitions critical for existingg categories g and Have rolled out new variants buildingg scale in existingg markets as well entering new and products which have categories a
Slide 27: Agenda
Agenda Dabur India-Introduction FMCG Industry Scenario Business Overview Strategy Overview Recent Performance 27
Slide 28: Recent Performance
Recent Performance 16 511 16,511 Consol. Consol Sales grew by 12 12.9% 9% during Q1FY14 14,620 15000 Domestic FMCG growth continued to grow at a Revenue 10000 steady pace reporting 13.2% growth (in Rs Rs. mn) 5000 International business reported growth of 17.4% with organic international busin
Slide 29: Market Cap and Shareholding Pattern
Market Cap and Shareholding Pattern Market Capitalization Shareholding Structure* in Rs. billion 309 2 309.2 DIIs, 4.0% Others, 7.0% FIIs, 20.4% 85 4 85.4 Promoters, Promoters 68.6% FY09 Jul 13 Jul‐13 *As of Jun 30, 2013 Dabur has witnessed exponential increase in market capitalization over the ye
Slide 30: Consolidated P&L
Consolidated P&L in Rs. million Q1FY14 Q1FY13 YoY (%) FY13 FY12 YoY (%) Net Sales 16,511.0 14,619.7 12.9% 61,463.8 52,831.7 16.3% Other Operating Income 54.2 92.9 297.4 222.5 Material Cost 8,073.6 7,316.4 10.3% 30,193.4 26,924.0 12.1% % of Sales 48.9% 50.0% 49.1% 51.0% Employee Costs 1,312.5 1,122.0
Slide 31: Consolidated Statement of Assets and Liabilities
Consolidated Statement of Assets and Liabilities Particulars (in Rs. million) As at 30/06/2013 As at 31/03/2013 As at 30/06/2012 Â EQUITY AND LIABILITIES 1 Shareholders’ funds (a) Share capital 1,744 1,743 1,743 (b) Reserves and surplus 20,854 19,501 16,711 Sub-total - Shareholders Shareholders' fun
Slide 32: Disclaimer
Disclaimer Some of the statements made in this presentation contain forward looking information that involve a number of risks and uncertainties. Such statements are based on a number of assumptions, estimates, projections or plans that are inherently subject to significant risks, as well as uncerta